Federal Student and Parent Loans
The Department of Education’s major form of self-help aid includes loans to students and parents through the William D. Ford Federal Direct Loan (Direct Loan) Program. Direct Loans include Federal Stafford, Federal Parent-PLUS, Federal Grad-PLUS and Federal Consolidation Loans and are available through the U.S. Government.
Federal Direct Parent -PLUS
The William D. Ford Federal Direct Parent -PLUS loan is available to parents of dependent undergraduate students. These loans are not based on need but when combined with other resources, cannot exceed the student’s cost of education. A credit check on the parent borrower is required and either or both parents may borrow through this program. Repayment begins within 60 days of final disbursement of the loan within a loan period. However, parents may request a deferment of payments while the student is attending at least half time.
Federal Direct Graduate -PLUS
The William D. Ford Federal Direct Grad-PLUS loan is available to graduate and professional degree students. These loans are not based on need but when combined with other resources, cannot exceed the student’s cost of education. The student must complete the FAFSA and a credit check is required. Repayment begins within 60 days of final disbursement of the loan. However, students may request deferment of payments while attending at least half time.
Federal Direct Stafford
Federal Stafford loans are low-interest loans that are made to the student. The loan must be used to pay for direct (tuition and fees, books and supplies) and indirect (room, board, transportation and personal expenses) educational related expenses. Subsidized loans are based on need while unsubsidized loans are not. Repayment begins six months after the student graduates, withdraws from school, or falls below half-time enrollment status.